The Pennsylvania sports bettin market experienced a remarkable surge, achieving a 56% increase in revenue during the fiscal year 2022/2023.
The market's gross revenue reached a record $492 million (after promotional credits) in this period, surpassing all previous figures since the inception of sports betting in the state in May 2019.
Over the years, Pennsylvania's sports betting revenue has seen significant fluctuations, but the latest financial report reflects a considerable spike in growth. To put it in perspective, here are the gross revenue totals for each fiscal year:
Despite the modest increase in handle, the state's hold percentage, representing the portion of wagers retained by sportsbooks, rose significantly, likely contributing to the surge in revenue. In FY 2022/2023, Pennsylvania's hold rate increased to 9.5% from 7.2% in FY 2021/2022.
The rise in the hold rate has been a determining factor in the revenue growth, with the state's sportsbooks finding a potentially winning formula for profitability.
FanDuel Sportsbook dominates the Pennsylvania Sports Betting Market.
FanDuel Sportsbook PA stands out as the clear leader in the fiercely competitive Pennsylvania sports betting market, boasting an impressive 38% market share. FanDuel reported a staggering $2.74 billion in handle and $255.5 million in revenue for FY 2022/2023, firmly establishing its dominance.
While DraftKings Sportsbook PA serves as FanDuel's primary competitor in the state, it falls far behind in both handle and revenue. DraftKings recorded $1.95 billion in total bets and $110 million in revenue for the same fiscal year.
FanDuel not only attracts more bets but also boasts a superior hold percentage compared to other sportsbooks in the state. While DraftKings' hold rate is 7.3%, below the Pennsylvania average of 9.5%, FanDuel maintains an impressive hold rate of 12.4%, making it the sole operator with a rate in double digits.
Given FanDuel's current market position and performance, it seems highly likely that the brand will continue to dominate the Pennsylvania sports betting landscape in the foreseeable future.
Following FanDuel's substantial market share, several quality sportsbooks are battling for positions in the second tier of the Pennsylvania market. Among them, DraftKings is the only other sportsbook to surpass $1 billion in handle and $100 million in revenue, solidifying its position as a strong contender.
Currently holding the third spot is BetMGM PA Sportsbook, reporting $575.1 million in handle and $21.1 million in revenue for FY 2022/2023.
Based on handle and revenue, the remaining sportsbooks competing in the second tier include Barstool Sportsbook, BetRivers Sportsbook, Caesars Sportsbook, PlaySugarHouse Sportsbook, betPARX Sportsbook, and PointsBet Sportsbook.
It's worth noting that Barstool's market share has been trending downward, but the company's upcoming app migration aims to enhance customer experience and help it retain the fourth spot.
As the fifth season of legal NFL betting approaches, the Pennsylvania sports betting market is on the cusp of exciting developments. With FanDuel Sportsbook PA firmly entrenched as the market leader, attention now turns to how competitors will strive for growth and how new entrants like Fanatics Sportsbook and Bet365 Sportsbook will impact the landscape.
The competition remains fierce, with 14 online sportsbooks already operational, including major players like DraftKings and BetMGM. Nevertheless, industry experts eagerly anticipate the entry of Fanatics and Bet365, which could bring fresh innovations and enticing offerings to attract Pennsylvania bettors.
Moreover, the future growth of Pennsylvania's sports betting market will also depend on potential market expansions. Three casinos, including Lady Luck Nemacolin, Parx Shippensburg, and Live! Casino Pittsburgh has vacant sports betting licenses, leaving room for new operators to enter and further diversify the market.
As the NFL season unfolds, sportsbooks' performance during this highly anticipated period will offer valuable insights into the market's dynamics. Pennsylvania's love for sports and passionate sports betting community continues to drive growth, making it a fascinating space to watch for both industry insiders and eager bettors.
A huge sports fan; locally, many know me as the guy who does the PA for our high school football team on Friday nights. Having grown up in Michigan, I am a sports fan of all the Detroit teams, and at the college level, I love Michigan State sports. I have covered sports betting, iGaming and casino industry news for many well known websites.
